Latest news with #CanapiVentures
Globe and Mail
3 days ago
- Business
- Globe and Mail
Fispan doesn't need the cash. So why has Lisa Shields's B.C. fintech just raised $30-million?
One of Canada's most successful women tech entrepreneurs, Lisa Shields, has raised US$30-million for her latest company Fispan Services Inc. in a deal led by U.S. growth equity firm Canapi Ventures. Beyond the headline information, however, the details of the deal reveal how much the financing market has shifted since the tech bubble burst in 2021. The Fispan transaction 'is quite different' from deals of that era, which saw money-losing startups pursue growth at all costs and raise huge financings at ever-inflated valuations, said Tom Davis, Canapi's San Francisco-based general partner. Instead, it is more indicative of a return to saner market dynamics, he said. 'This is a classic growth equity deal.' For one, Fispan didn't need the money. Fispan sells subscription software tools that enable banks to embed services for mid-market companies into enterprise resource planning (ERP) and accounting platforms such as Oracle NetSuite, Intuit QuickBooks and Xero. That makes it easier for clients to handle cash and accounts management in one place. Fispan has 15 customers, including Bank of Montreal, Toronto-Dominion Bank, JP Morgan and Wells Fargo, and is used by 4,500 of their clients. Vancouver entrepreneur whose last business was sold to PayPal for $400-million expands new fintech for banks The nine-year-old Vancouver company generates US$25-million-plus in annual revenue after growing by 80 per cent on average over the past three years. It turned profitable last year and still has half the US$16-million from its last funding in 2021. (Fispan did fall prey to the grow-at-all-costs mindset, Ms. Shields admits, before cutting 30 per cent of staff in 2022 and shifting 'to serve our bank clients with quality and consistency at all costs.') Since Fispan sells to banks, it doesn't spend much on marketing and 'has fantastic unit economics, a proven sales motion, a solid customer base and high net dollar retention within existing customers,' said Mr. Davis. Meanwhile, valuations for fintech companies are running at eight to 12 times revenues, about half what they were at the peak. So why raise at all? 'You're asking the question we had as an internal debate,' said Ms. Shields, an aeronautical engineer by training whose previous company, payments platform provider Hyperwallet Systems Inc., sold to PayPal Holdings Inc. for US$400-million in 2018. The answer is two-fold, she said: to 'remove liquidity pressure' by offering investors a chance to take money off the table. Most of the Canapi-led investment – US$17-million-plus – is going to angel and seed-stage backers in what is called a secondary deal. Canadian deal-making still stuck in a rut, despite the hot markets Secondaries have become commonplace as mergers and acquisitions, and initial public offerings, have dried up. While companies aren't keen to issue equity or sell at lower valuations, many investors are happy to cash in some gains. In fact, Ms. Shields would have been content to do just a secondary offering and was only willing to sell up to US$15-million in primary equity to minimize dilution. 'We didn't want to take more than we had to,' said Jay Rhind, a Fispan director and partner with Rhino Ventures. The second reason was to find a new investor with expertise and deep pockets. Fispan had had the same group of investors since 2018 – early Fispan investor Rhino led the 2021 round – and Ms. Shields wanted to add a growth equity firm to her ownership group and boardroom that was familiar with the realities of selling to slow-moving banks. To make the deal big enough to interest growth equity firms, which typically invest large amounts in deals, Ms. Shields targeted a US$40-million raise, but existing investors ultimately weren't willing to sell as much as expected. Canapi was the ideal choice for several reasons: Because it invests in a wider range of deals, it was open to investing a lower amount than some growth equity firms. Its leaders hail from finance, financial technology and regulatory affairs (managing partner Gene Ludwig was chief banking regulator of the U.S. during the Clinton administration), and its funders are comprised of 75 financial institutions, many of which could open doors for Fispan. That was important for Ms. Shields, who started Fispan after noticing banks weren't keeping up with digital challengers that were plugging their services into business software platforms. She set out to build tools that would make banking services 'just as delightful and easy to use as those of any fintech' on those platforms. But many fintechs that target mid-market corporations (those with US$30-million to US$2-billion in annual revenues) typically top out before hitting 10,000 customers, she said. Ms. Shields sees a potential market of 250,000 such companies in North America alone and is eying expansion in Britain. 'Nobody has ever had the kind of market share that really makes it interesting. We think with our bank-based distribution model we have a really interesting opportunity to get there,' she said. 'I want guidance from people that have worked with banks. This is about structuring the company to be able to continue high growth with discipline in the face of this radical technological shift that's coming, and we want to be part of it.'
Cision Canada
3 days ago
- Business
- Cision Canada
FISPAN Raises $30M Series B to Accelerate Embedded Banking Innovation for Mid-Market Businesses
Canapi Ventures leads investment round to accelerate FISPAN's growth VANCOUVER, BC, June 3, 2025 /CNW/ - FISPAN, the industry leader in embedded ERP banking solutions, announced today that it has closed $30 million USD in Series B funding led by fintech and enterprise software investment firm Canapi Ventures. This new capital will accelerate FISPAN's mission of seamlessly integrating banking services directly into businesses' enterprise resource planning (ERP) systems and accounting software. Bridging the Gap Between Banks and Businesses For many years banks have invested in host-to-host and API platforms, enabling large enterprises to reap the productivity benefits of connecting to their financial institutions directly. FISPAN packages those connectivity capabilities and enables banks to distribute their treasury products to mid-market and smaller businesses via an easy to install, out-of-the-box, in-ERP plugin. Trusted by the world's largest banks and nearly 5,000 businesses across North America, FISPAN enables banks to deliver modern, integrated client experiences by embedding key financial and banking capabilities directly into their existing ERP system or accounting software. For businesses, this means: Centralized Financial Workflows: Integrating financial transactions and operational workflows into a single system, eliminating inefficiencies and disconnected processes Automated Processes: Built-in automation streamlines routine tasks like payment initiation and approval processes – saving time and lowering costs Fewer Manual Errors: Direct ERP integrations minimize manual uploads and data entry, improving accuracy and minimizing operational risk Through seamless API integration with systems like Oracle NetSuite, Sage Intacct, and Microsoft Dynamics 365 Business Central, banks can offer contextual solutions that streamline payables, cash management, and reconciliation. "This Series B funding is a pivotal moment for FISPAN, empowering us to significantly scale our innovation and market reach," said Lisa Shields, CEO & Founder at FISPAN. "Canapi quickly distinguished themselves through their understanding of the embedded ERP banking landscape and our unique opportunity within it. With an LP network of over 75 financial institutions—and partners with banktech operating expertise — Canapi is a natural partner for our next chapter. We're excited to work with Canapi to help more treasury teams optimize their operations." Driving the Next Phase of FISPAN's Expansion In conjunction with the investment, Tom Davis from Canapi Ventures will join FISPAN's board of directors. This new capital will fuel several key growth opportunities: Accelerated Product Development: Deepen AI capabilities, expand ERP and accounting system integrations, and enhance platform capabilities to support full-stack treasury solutions Expanded Market Reach: Scale go-to-market efforts in key regions and significantly grow banking and channel partner networks Strategic Talent Acquisition: Expand FISPAN's world-class team with top-tier talent to accelerate product leadership and customer experience "FISPAN is at the forefront of a fundamental shift in how businesses interact with their banks," said Tom Davis, General Partner at Canapi. "Their proven ability to deliver highly sought-after embedded finance solutions positions them for tremendous growth. Our investment reflects our confidence in their visionary team and their capacity to build a leading platform that drives efficiency and value for both financial institutions and their corporate clients." About FISPAN FISPAN is a leading fintech company that seamlessly integrates banks with their clients' enterprise resource planning (ERP) and accounting systems. Founded in 2016, FISPAN provides innovative ERP banking solutions that eliminate the complexities and frustrations of traditional banking services. By embedding banking services directly into ERP and accounting software, FISPAN streamlines financial workflows, reduces costs, minimizes manual errors, and enhances efficiency for businesses of all sizes. For more information, head to the United States – Canapi brings unmatched sector experience and best-in-class knowledge, connections, and credibility to founders. For more information, visit
Yahoo
4 days ago
- Business
- Yahoo
Rally UXR Secures $11M Series A to Transform How Enterprises Conduct User Research
Canapi Ventures Leads Round to Accelerate Adoption of Rally's User Research CRM Platform Across Product-Driven Organizations NEW YORK, June 2, 2025 /PRNewswire/ -- Rally UXR, the leading User Research CRM platform, today announced it has raised $11 million in a Series A funding round led by Canapi Ventures with participation from existing investors Stage 2 Capital and Y Combinator. Rally is redefining how enterprises manage and engage with their users for research—putting customer voices at the center of product innovation. Rally's SaaS-based platform streamlines the way research teams connect with users by automating participant selection, screening, outreach, scheduling, and incentives—dramatically reducing the time and complexity typically required to conduct high-quality research at scale. By embedding research operations into a single, secure, and compliant CRM, Rally enables teams to bring products to market faster that better fit the needs of their customers, generating more revenue in the process. "Rapid innovation demands equally rapid user insight," said Oren Friedman, CEO and co-founder of Rally. "Rally is purpose-built for the enterprise, helping teams connect directly with their customers to deliver the rich, actionable insights needed to shape exceptional product experiences—while building stronger, long-term customer relationships." Rally's platform is trusted by forward-thinking companies including Adobe, Sonos, SurveyMonkey, HelloFresh, GitLab, MongoDB, and Monzo Bank, and has helped leading brands manage and conduct research with more than 10 million users. Since its founding in 2021, Rally has experienced 3x year-over-year revenue growth and was backed by Y Combinator through its Winter 2022 cohort. "At the heart of Rally's offering is the conviction that great products start with great user research," said Walker Forehand, president and general partner at Canapi Ventures. "We're excited to partner with the Rally team to help more organizations unlock faster, deeper user understanding—and translate it into real product impact." "We obsess over the customer experience at Webflow, and Rally has transformed the way we engage with our users for research," said Brad Orego, head of research at Webflow. "We've been able to dramatically increase the volume and quality of research possible while simultaneously improving governance and security. With Rally, our entire Product team is empowered to confidently run their own research, accelerating product development, streamlining operational processes, and ultimately delivering a better experience for our customers." Rally's leadership team brings deep experience in building secure, scalable enterprise platforms, including a product and engineering team comprised of ex-HubSpot talent. Their collective mission: to make great research easy. About Rally UXRRally UXR is the User Research CRM trusted by leading companies to generate fast, high-value user insights that drive better product decisions. Based in New York City, Rally helps research and product teams automate participant management and streamline research workflows across the enterprise. Learn more at About Canapi VenturesCanapi is a B2B software and financial technology venture and growth equity platform investing in early to growth-stage companies offering disruptive alternatives to outdated business models and technologies. Backed by the Canapi Alliance – a network of over 70 of the leading financial institutions across the United States – Canapi's partners have decades of hands-on experience in financial services. Canapi brings unmatched sector experience and best-in-class knowledge, connections, and credibility to founders. View original content to download multimedia: SOURCE Rally UXR
